SBI Life Insurance's stock market debut; gains 5% on issue-price
SBI Life Insurance made a strong market debut as it got listed on stock exchanges. It debuted on BSE at Rs. 733.30, with 4.75% premium over Rs. 700 issue price; it reached a Rs. 738 high. On NSE, it opened at Rs. 735, with 5% premium over the issue price. However, the stock fell 1.5% on Sensex in less than 20 minutes of trading.
SBI Life Insurance, a subsidiary of State Bank of India, issued a Rs. 8,400cr Initial Public Offering (IPO) in September. The price band was fixed at Rs. 685-700/share for the IPO. The IPO was oversubscribed 3.58 times between 20-22 September. The portion for qualified institutional buyers (QIBs) was oversubscribed 12.56 times; those for non-institutional investors and retail investors received 70% and 85% subscription, respectively.
SBI Life Insurance is a joint venture between the State Bank of India and France's BNP Paribas Cardif. It is the second life insurance company to list on the stock market after ICICI Prudential Life. Its Rs. 8,400cr IPO is the biggest public offer in seven years. It is also the largest share sale in the country after Coal India's Rs. 15,200cr IPO.